Japan Demands U.S. Drop All Tariffs Before July Deadline
With a critical trade deadline approaching, Japanese Prime Minister Shigeru Ishiba is intensifying pressure on the United States to eliminate tariffs entirely, calling current duties economically harmful for both nations.
During a recent national broadcast, Ishiba emphasized the need for a zero-tariff framework and dismissed partial reductions as insufficient. His stance stands in contrast to President Trump’s position, which favors retaining a 10% minimum tariff on imports — a threshold Ishiba argues would continue to suppress bilateral trade potential.
The friction is most apparent in the auto sector. Japanese carmakers are already absorbing steep costs from existing U.S. tariffs, with some firms reportedly losing $1 million per hour in penalties. If a deal isn’t reached by July 8, those duties could jump to 25% on vehicles and 24% on other exports — a blow Ishiba warned would undercut Japan’s role in the U.S. economy, where it continues to invest heavily.
While the recent U.S.-UK trade pact, which cut tariffs on British auto exports, has been welcomed by some as a blueprint, Ishiba sees it as a cautionary tale — describing the preserved 10% baseline as a compromise Japan should reject.
Beyond trade, Ishiba urged patience on domestic fiscal policy, warning against rapid reductions to Japan’s consumption tax. He called for targeted support for low-income households instead of sweeping tax relief that could destabilize government revenues.
Despite differences on tariffs, Ishiba struck a diplomatic tone, describing his relationship with Trump as unexpectedly positive. Whether that rapport can overcome policy divides remains to be seen — but the clock is ticking.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
